-In the above figure, what will be the output level produced if average cost pricing is used?

Name: -In the above figure, what will be the output level produced if average cost pricing is used?
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Question

Quizplus · Accepted Answer

Average cost pricing involves setting the price at the point where average cost (AC) equals the demand curve. This typically results in a production level that is between the monopolistic output and the perfectly competitive output, hence the correct answer is "somewhere between 900 and 1,200."

-In the Above Figure, What Will Be the Output Level